Two telling figures about the talent gap have emerged:
- The U.S. added 2.65 million jobs in 2015, experiencing steady job gains.*
- And on average, 2.75 million people voluntarily quit their jobs each month in 2015.**
What does this mean for protecting your company’s talent pipeline?
Be wary of losing your top talent due to the talent gap.
“There is a gap between the skills a company needs and what they’re finding in their available talent pool,” says Ed Chaffin at IMPACT Group. “Employees are back in control – dictating their job search and the skills they want to leverage. Companies are finding that it is more difficult to attract great talent because employees simply have more options.”
This talent gap is a major issue and companies need to respond quickly. “The economy is improving, workers are gaining confidence, and organizations need to react now.”
Companies know they’re behind the eight ball.
Chances are high your talent development strategy is not as strong as you think. A talent gap may be looming for your organization. “The annual Deloitte Human Capital Trends report is a telling sign that companies need to place a stronger focus on developing leaders,” says Ed. Organizations realize the need to address leadership development challenges is paramount – 78% of respondents rated it as very important – but less than half of respondents are prepared to address the challenges. This talent gap of 36% is the largest in the report. To add insult to injury, the capability gap for building strong leaders has significantly widened compared to 2014.
Does the word ‘yikes’ come to mind?
“The time to respond is now,” says Ed. “There are rapid changes happening in the workforce, and companies can’t afford to sit back and hope their talent problems resolve themselves.”
The talent gap can no longer be overlooked.
The percentage of companies who felt ready to address training issues dropped from 75% in 2014 to 40% in 2015. Internal plans just aren’t cutting it.
Investing in your talent has a ripple effect. Not only is it linked to increased engagement and ROI, but it also strengthens the foundation of growth for your company and your employee. “Training and development trickle down to the employee’s peers, the vendors they interact with, and – ultimately – the customers. When companies say they don’t have the money to invest in talent, I tell them they can’t afford not to,” says Marcie Mueller, Vice President of Leadership Development at IMPACT Group.
Boomers are retiring in mass, yet knowledge transfer plans are shaky.
Two-thirds of the oldest boomers have retired – while the younger boomers are steadily following suit.*** Entrepreneur magazine notes that baby boomers make up a large portion of new entrepreneurs. They’re ready to go out on their own – taking their invaluable company and industry knowledge with them. This creates even more risk of a talent gap and information gap at your organization.
“When boomers leave, there is a huge gap in knowledge transfer between them and the next leaders. Succession planning needs to be a top focus if organizations want to maintain a viable pipeline of leaders,” comments Ed. That means companies must be proactive before their seasoned leaders are one foot out the door.
Can you feel the rocky talent foundation at your office shifting?
Don’t risk falling into the talent gap black hole. IMPACT Group’s customized talent development programs are proven to seal fractures in any talent foundation. Invest in your executives and rising leaders and guarantee the skills and expertise you need are at the ready. Don’t wait – the climb out of the gap is too costly.
*New York Times, Robust Hiring in December Caps Solid Year for U.S. Jobs
**Bureau of Labor Statistics, Job Openings and Labor Turnover
***Gallup, Only a Third of Oldest Baby Boomers in U.S. Still Working